Cap 155L s 26 Measures which may be taken by Monetary Authority if authorized institution using STO approach or ASA approach no longer satisfies

Contents of Section

Chapter:	155L	Title:	Banking (Capital) Rules	Gazette Number:	E.R. 1 of 2012
Section:	26	Heading:	Measures which may be taken by Monetary Authority if authorized institution using STO approach or ASA approach no longer satisfies specified requirements	Version Date:	09/02/2012

(1) Where—

(a) an authorized institution uses the STO approach or ASA approach to calculate its operational risk; and

(b)

the Monetary Authority is satisfied that—

(i) if the institution were to make a fresh application under section 25(1) for approval to use the STO approach or ASA approach to calculate its operational risk, the approval would be refused by virtue of section 25(3); or

(ii) the institution has contravened a condition attached under section 33A(1) or (2) to its approval granted under section 25(2)(a), (L.N. 137 of 2011)

the Monetary Authority may, by notice in writing given to the institution, require the institution to use the BIA approach to calculate its operational risk instead of the STO approach or ASA approach, as the case may be.
(2) A notice given to an authorized institution under subsection (1) may require the institution to use the BIA approach to calculate its operational risk in respect of all of its business, or such parts of its business as specified in the notice, during the period beginning on such date, or the occurrence of such event, as specified in the notice and ending on such date, or the occurrence of such event, as specified in the notice.
(3) An authorized institution shall comply with the requirements of a notice given to it under subsection (1).